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Trump Tax Bill Faces Likely Changes, Delays in Senate

Trump Tax Bill Faces Likely Changes, Delays in Senate

Bloomberg23-05-2025

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The Republican legislative balancing act now shifts to the Senate.
Senate Majority Leader John Thune (R-S.D.) said this week House Republicans would like to see as few changes possible to the sweeping tax and spending package (H.R. 1) the House passed by a single vote this morning. But he was quick to add that the Senate will have its say as it aims to get the massive reconciliation package a step closer to becoming law.

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WASHINGTON — The changes made to President Trump's big tax bill in the Senate would pile trillions onto the nation's debt load while resulting in even steeper losses in healthcare coverage, the nonpartisan Congressional Budget Office said in a new analysis, adding to the challenges for Republicans as they try to muscle the bill to passage. The CBO estimates that the Senate bill would increase the deficit by nearly $3.3 trillion from 2025 to 2034, a nearly $1-trillion increase from the House-passed bill, which the CBO has projected would add $2.4 to the debt over a decade. The analysis also found that 11.8 million more Americans would become uninsured by 2034 if the bill became law, an increase over the estimate for the House-passed version of the bill, which predicts that 10.9 million more people would be without health coverage. The stark numbers are yet another obstacle for Republican leaders as they labor to pass Trump's bill by his declared July 4 deadline. Even before the CBO's estimate, Republicans were at odds over the contours of the legislation, with some resisting the cost-saving proposals to reduce spending on Medicaid and food aid programs even as other Republicans say those proposals don't go far enough. Republicans are slashing the programs as a way to help cover the cost of extending some $3.8 trillion in Trump tax breaks put in place during his first term. The push-pull was on vivid display Saturday night as a routine procedural vote to take up the legislation in the Senate was held open for hours as Vice President JD Vance and Republican leaders met with several holdouts. The bill ultimately advanced in a 51-49 vote, but the path ahead is fraught, with voting on amendments still to come. Still, many Republicans are disputing the CBO estimates and the reliability of the office's work. To hoist the bill to passage, they are using a different budget baseline that assumes the Trump tax cuts expiring in December already have been extended, essentially making them cost-free in the budget. The CBO on Saturday released a separate analysis of the GOP's preferred approach that found the Senate bill would reduce deficits by about $500 billion. Democrats and economists decry the GOP's approach as 'magic math' that obscures the true costs of the GOP tax breaks. In addition, Democrats note that under the traditional estimation system, the Republican bill would violate the Senate's 'Byrd Rule' that forbids the legislation from increasing deficits after 10 years. In a Sunday letter to Oregon Sen. Jeff Merkley, the top Democrat on the Senate Budget Committee, CBO Director Phillip Swagel said the office estimates that the Finance Committee's portion of the bill, also known as Title VII, 'increases the deficits in years after 2034' under traditional scoring. Hussein writes for the Associated Press.

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